With Bitcoin still trading just above $ 9,000 at press time, alternative currencies have felt no ripple effect. For the most part, the altcoin market moves in cohesion with the king coin, which still has 64 percent dominance in the collective capitalization of the cryptocurrency market.
Cardano, unlike the rest of the altcoin market, has been moving forward since the March downturn. In the past three months, its price has increased by more than 350 percent.
Following this monumental price increase, it is not surprising that Cardano is operating in a strong upward channel, which has allowed it to reach its highest price in over a year. However, despite the strength of the channel, it is starting to shake. The two trend lines of the channel have been moving more and more with each other, with a possible breakout.
In the last three months, only twice has the price moved out of the channel: from April 28 to April 29, and between May 30 and June 11. The price showed a lateral trend until July 1 and after hitting the trend line, there was a massive boost. Since the beginning of the month, ADA has risen 24 percent to the top of the channel.
Source: ADAUSD via Trading View
While the closest support is down at $ 0.055, a 72 percent drop, and unlikely to say so, Cardano is caught between two key levels of resistance. The first is placed at $ 0.088, which happened on July 1, and the next is at $ 0.1, which it failed to break in June 2019.
Last year, like all alternative currencies, Cardano’s 2019 ATH was in June 2019. Since it hit the $ 0.1 high, its H2-2019 was lousy and closed the year nearly 70 percent from this high.
The recent bomb and overall ADA bullish move in the second quarter of 2019 was unexpected, to say the least from an investor’s point of view. Altcoin has a weak RSI of 63.68. In the past two months, ADA has been “overbought,” that is, RSI> 70 twice in April and June, after which it saw prolonged lateral movement. Last week, RSI had reached the overbought ceiling twice, indicating the need to sell.
Given the current market situation with stable Bitcoin trading, Cardano’s rapid price rise last week, and weak and declining RSI, the price is likely to come down. With the current trading price on the channel ceiling, a rebound of just under $ 0.1 can be expected with a price unlikely to fall below the support level of $ 0.088.
Your opinion is important to us!
